With the cash rate now being tipped to go lower before it goes higher, if I had $10,000 sitting in a bank account I would consider putting it to work in the share market.
Three shares that I would consider investing these funds into are listed below. Here's why I think they could generate strong returns for investors over the coming years:
Afterpay Touch Group Ltd (ASX: APT)
This payments company's shares have rocketed higher this year thanks largely to the success of its buy now, pay later platform in the massive U.S. market. The strong uptake in the U.S. by both consumers and merchants was a big reason Afterpay Touch posted a 147% increase in underlying sales to $2.3 billion during the first half of FY 2019. I expect more of the same in the second half and FY 2020, which could make Afterpay Touch a great buy and hold option even after its stellar share price gain.
Bravura Solutions Ltd (ASX: BVS)
Bravura Solutions is a provider of software products and services to the wealth management and funds administration industries. I've been very impressed with the way the company has been performing over the last few years and was pleased to see this has continued in FY 2019. In the first half of FY 2019 the company achieved revenue growth of 24% and EBITDA growth of 28% thanks to increasing demand for its wealth management platform. Another positive was that the company's recurring revenue increased 31% during the half and now accounts for a sizeable 72% of total revenue.
Cochlear Limited (ASX: COH)
One of my favourite growth shares on the ASX is this leading global hearing solutions company. I believe it has outstanding long term growth potential due to the ageing population tailwind. As people get older their hearing will more often than not fade. So with the over-60 population expected to increase significantly globally over the next couple of decades, I believe Cochlear is well-positioned to profit due to the quality of its product portfolio, investments in R&D, and global distribution network.
